Bulls Pull Out a Modest Win

Updated from 4:11 p.m. EST

A morning rally on Wall Street faded Wednesday afternoon as Republican Senate members expressed skepticism regarding a proposed bailout plan for the U.S. auto industry. Nevertheless, the major indices ended the session with gains after an afternoon push by the bulls edged stocks back into positive territory.

The Dow Jones Industrial Average, which had rallied about 188 points earlier in the session, ended the day up 70.09 points, or 0.8%, at 8761.42. The S&P 500 gained 10.57 points, or 1.2%, to 899.24, and the Nasdaq added 18.14 points, or 1.2%, at 1565.48.

Brian Gendreau, investment strategist at ING Investment Management, says the last few days have provided a well-warranted rebound from panic-selling levels, but, he says, it's felt more like a bear rally and less like the beginning of a bull market.

We've had a slight upward trend on some positive news with regard to President-elect Obama's infrastructure plan and progress for the automakers in Washington, says Matthew Smith, chief investment officer of Smith Affiliated Capital -- "but in a bear market, that can change in a minute."

"You just don't know what's going to be coming out in terms of Washington or Wall Street," he says, in terms of the current market sentiment.

House Democrats said they finalized an agreement for a roughly $15 billion bailout for the Big Three automakers -- Ford (F), General Motors (GM) and Chrysler.

But the plan, under which the government would draw from an existing loan program meant to help the automakers build fuel-efficient vehicles, is facing pushback from skeptical Republicans in the Senate.